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GENERAL SITUATION IN MEXICO

Weekly Review # 70 I September 1, 2021

MANUFACTURING INDUSTRY MEXICAN FEDERAL GOVERNMENT SEEKS TO CONNECT SOUTH-SOUTHEASTERN STATES WITH THE USMCA The Ministry of Economy inaugurated the ‘SouthSoutheast Week’, to promote business for SMEs in Campeche, Chiapas, Guerrero, Oaxaca, Quintana Roo, Puebla, Tabasco, Veracruz, and Yucatan. On Monday, the Mexican government announced an initiative to connect the new agreement between Mexico-United States-Canada (USMCA) with the nine states in the south-southeast of the country, together representing only 5% of the total value of Mexico’s exports. The Secretary of Economy, Tatiana Clouthier, expressed in the virtual event: “Part of what we consider fundamental is that the SMEs, the small and medium-sized companies of the south-southeast, can make connections with the north of the country and with the United States and Canada to be able to grow.” Mexico’s government has anchored its forecast of over 6% GDP growth in 2021 to foreign trade and the T-MEC, which came into force in July 2020, after the historic 8.2% slump in 2020. According to the Ministry of Economy, Mexico strengthened its position as the United States’ top trading partner in the first half of 2021, with trade reaching a value of nearly $320 billion, a year-on-year growth of 32.2%. But Clouthier warned that of the total value of Mexican exports to the world, the nine states of the southsoutheast only represent 5%. “We want to increase these numbers gradually through the work we will perform,” she said.

While primary activities belonging to the countryside represent 3.5% of the national GDP, in these new states of the south-southeast, the proportion is double, added Javier Delgado, general director of the Rural Sector 3 In addition, a fifth of employment in the south-southeast depends on the countryside, while in the rest of the country, it is 13%, he added. In this context, the Banco Nacional de Comercio Exterior (Bancomext) and Nacional Financiera (Nafin) have supported more than 180,000 businesses in the region since 2020. Secretary Clouthier encouraged to take advantage of the new benefits of the T-MEC for small and mediumsized entrepreneurs. In particular, she enunciated the “consolidation of Mexico’s position in North America,” a “better business environment” for small entrepreneurs, the opportunity to insert itself into global chains, and the possibility for Mexico to “consolidate itself as a leading export center.” “President (Andrés Manuel) López Obrador has the firm intention of consolidating not only the USMCA but all international treaties, as a strong lever for the nation’s development,” he argued.

GOOD NEWS MEXICAN FEDERAL GOVERNMENT SEEKS TO CONNECT SOUTH-SOUTHEASTERN STATES WITH THE USMCA The Ministry of Economy inaugurated the ‘SouthSoutheast Week’, to promote business for SMEs in Campeche, Chiapas, Guerrero, Oaxaca, Quintana Roo, Puebla, Tabasco, Veracruz, and Yucatan. On Monday, the Mexican government announced an initiative to connect the new agreement between Mexico-United States-Canada (USMCA) with the nine states in the south-southeast of the country, together representing only 5% of the total value of Mexico’s exports. The Secretary of Economy, Tatiana Clouthier, expressed in the virtual event: “Part of what we consider fundamental is that the SMEs, the small and medium-sized companies of the south-southeast, can make connections with the north of the country and with the United States and Canada to be able to grow.” Mexico’s government has anchored its forecast of over 6% GDP growth in 2021 to foreign trade and the T-MEC, which came into force in July 2020, after the historic 8.2% slump in 2020. According to the Ministry of Economy, Mexico strengthened its position as the United States’ top trading partner in the first half of 2021, with trade reaching a value of nearly $320 billion, a year-on-year growth of 32.2%. But Clouthier warned that of the total value of Mexican exports to the world, the nine states of the southsoutheast only represent 5%. “We want to increase these numbers gradually through the work we will perform,” she said. While primary activities belonging to the countryside represent 3.5% of the national GDP, in these new states of the south-southeast, the proportion is double, added Javier Delgado, general director of the Rural Sector Capitalization and Investment Fund (FOCIR).

SOURCE: Forbes

In addition, a fifth of employment in the south-southeast depends on the countryside, while in the rest of the country, it is 13%, he added. In this context, the Banco Nacional de Comercio Exterior (Bancomext) and Nacional Financiera (Nafin) have supported more than 180,000 businesses in the region since 2020. Secretary Clouthier encouraged to take advantage of the new benefits of the T-MEC for small and mediumsized entrepreneurs. In particular, she enunciated the “consolidation of Mexico’s position in North America,” a “better business environment” for small entrepreneurs, the opportunity to insert itself into global chains, and the possibility for Mexico to “consolidate itself as a leading export center.” “President (Andrés Manuel) López Obrador has the firm intention of consolidating not only the USMCA but all international treaties, as a strong lever for the nation’s development,” he argued.

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference August 25-31, 2021

VACCINATION The President reported that almost 65% of the population is now vaccinated and reiterated that all those over 18 will have at least one dose by October. RELATIONSHIP WITH THE UNITED STATES When questioned about the “Stay in Mexico” program, the President commented that he supports what is defined by the Ministry of Foreign Affairs of Mexico and affirmed a good relationship with the US government. He stressed that it had been proposed to implement a temporary visa program for work, as labor is needed there. ELECTORAL REFORM The President assured that the objective of his proposal will be to promote greater citizen participation. He commented that the fact that the citizens did not directly elect more multi-member deputies would be a setback. There won’t be a correct understanding of the people, so he will seek to address that point. BACK TO CLASSES Different states informed about the return to school classes. The state rulers assured that the necessary measures are being taken so that the return is safe. The President added that health is very important, but also education, following the required protocols.

SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg

MEASURES TAKEN BY STATES IN MEXICO

BAJA CALIFORNIA The State of Baja California remains considered as medium-risk or yellow light. Official reports confirmed that are currently 1,259 active cases with hospital occupancy at 49.12%. The percentage of the population with a complete vaccination scheme increased to 78.51% in the past week. The vaccination plan continues daily with applying the complete vaccination scheme to the adult population in Tijuana, Ensenada, and Mexicali. The vaccination plan continues in Tijuana, Ensenada, and Mexicali for the second dose of Astra Zeneca and Sinovac. Baja California’s Health Secretary mentioned that they worked together with the Education secretary to open face-to-face classes in Baja California following all the protocols established by the Secretary of Health.

SONORA The vast majority of Sonora’s municipalities remain considered highrisk tier or orange light, four municipalities in the maximum-risk tier or red light, three municipalities in the medium-risk tier or yellow light, and two municipalities out of 72 in the low-risk tier or green light. Official reports confirmed that are currently 2,906 active Covid-19 cases and 377 hospitalized patients. 186 new confirmed cases were reported in the past 24 hours. Sonora Health Secretary has 17 “Anticipa” care centers to detect COVID-19 suspects and apply COVID-19 tests to people with symptoms.

MEASURES TAKEN BY STATES IN MEXICO

COAHUILA In Coahuila, appeals are analyzed so minors can receive the vaccine against Covid-19. Roberto Bernal Gomez, Secretary of Health in the entity, commented that they are two minors from Saltillo whose case is analyzed, one of them a boy, the other girl. He said that it is accepted that children under 12 could be vaccinated. However, there is a process to calculate the correct dose for this age. TAMAULIPAS The state of Tamaulipas started this week the 2021-2022 school cycle. In 19 municipalities where the epidemiological traffic light allows it, the return to classes will be in person, safe, voluntary, and gradual, while in the municipalities with a red light, the online classes will continue.

NUEVO LEON 17 percent of all the Nuevo Leon’s schools opened their doors today to receive elementary school students whose parents decided to send them to classrooms at the beginning of the school year marked by the Covid 19 pandemic. The Ministry of Health in the entity reported that today one million 058 thousand students and 49 thousand teachers from 5 thousand 317 schools, public and private, of initial, preschool, primary, and secondary levels returned to the activity in face-to-face, mixed, and distance mode.

MEASURES TAKEN BY STATES IN MEXICO

QUERETARO The state Governor, Francisco Dominguez Servien, assured that there is still hospital capacity to care for people infected by Covid-19. According to experts, it is considered that next week a downward trend in the number of patients will begin to be seen. “The pandemic is going to continue; it helps a lot that people are getting vaccinated. In the capital, last week, the number of people with at least one vaccination, 18 years old and older, totaled 70 percent, we have to go ahead”, he said while recalling that with the return to classes, parents will determine whether or not their children will return in person and thus ensured that those who do not have the confidence to send their children to school, will not have any impediment to do so.

AGUASCALIENTES Aguascalientes is currently facing a third wave of daily infections of COVID-19. This third wave at the national level has surpassed the highest pandemic peak seen previously, while locally confirmed cases continue to increase. According to the National Epidemic Surveillance System, the incidence rate of active cases in the last 14 days is 65.51 per 100,000 population in Aguascalientes. This data are also reflected in hospital occupancy since the higher the number of sick individuals, the higher the number of hospitalized patients. The statewide figure is 61.73%, broken down by medical unit and type of care.

MEASURES TAKEN BY STATES IN MEXICO

GUANAJUATO In one week, Covid-19 cases in the state of Guanajuato increased by 23.1 percent, according to data provided by the State Ministry of Health (SSG). While 4,472 cases were registered during the week of August 16 to 22, 5,505 cases were registered during August 23 to 29, representing a total difference of 1,033 patients in 7 days. Last Sunday it was reported that 786 people tested positive for the SARSCOV2 virus, some of the municipalities with the highest number of infections are Leon (228), Irapuato (56), Salamanca (51), Guanajuato Capital (43), Acambaro (38), Dolores Hidalgo (34), San Luis de la Paz (31), San Miguel de Allende and Celaya (22), Uriangato and Jaral del Progreso (19), as well as Silao (6).

JALISCO The Governor of Jalisco, Enrique Alfaro, highlighted the impressive response of young people between 18 and 29 for vaccination against Covid-19. On Wednesday, September 1, the registration opens, and 250 thousand appointments are planned. “We are giving as soon as the appointments open, they are running out, and well, it will not be the exception what will happen from Wednesday. We only ask for patience. Suddenly desperation sets in, and everyone would like to be programmed. Still, we are working at full capacity, and the number of appointments depends on when the vaccines arrive,” said the Jalisco’s Governor. In the Macrocenter of the Benito Juarez Auditorium, there is a capacity to inoculate 25 thousand people per day with the possibility of increasing it through adjustments to be made by the Ministry of Health. 300 thousand appointments were programmed, but as the doses arrive, more will be available, said Alfaro Ramirez

MEASURES TAKEN BY STATES IN MEXICO

STATE OF MEXICO On Saturday, vaccination against Covid-19 began for young people between 18 and 29 and pregnant women in Toluca, State of Mexico. The State of Mexico resumed face-to-face classes. CDMX Authorities announced that there will be no vaccination this week due to bottlenecks generated in COFEPRIS for the allocation of vaccines at the federal level. It is expected that this Friday, the schedule will be announced to continue with the vaccination of first and second doses in the different segments of the population. On Monday, face-to-face classes were resumed amid the third wave of the coronavirus pandemic, with the Delta variant as predominant.

VACCINATION PROGRESS

Since December 24 and up to August 29, 57 million 547,462 people have received at least one dose against COVID-19, representing 64 percent of the population over 18 years of age. Of this total, 58 percent, that is, 33 million 620 thousand 717, have a complete scheme, and 42 percent, 23 million 926 thousand 745, are new schemes. Mexico City, Quintana Roo, Queretaro, Sinaloa and Baja California, show immunization advances ranging from 80 to 92 percent. They are followed by Nayarit, Colima, Hidalgo, Baja California Sur, Aguascalientes, Chihuahua, Yucatan, Sonora, San Luis Potosi, Tamaulipas and Zacatecas, with advances ranging from 71 to 79 percent.

TOWARDS THE “NEW NORMAL”

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

INFORMATION UPDATED ON AUGUST 31, 2021 AT 19:00 HRS LOCAL TIME.

NEW CASES REPORTED: 5,564

SOURCE: https://www.gob.mx/salud/

CONFIRMED CASES: 3,341,264

NEW DEATHS REPORTED: 326

CONFIRMED DEATHS: 258,491

INCREASE OF CONFIRMED CASES SINCE THE FIRST REPORT MAP WITH THE DISTRIBUTION OF THE INCIDENCE RATE OF ACCUMULATED CASES OF COVID-19 BY ENTITY OF RESIDENCE.

National rate 84.24

0 to 10.0 (0 states)

40.1 to 50 (4 states)

10.1 to 20 (1 states)

50.1 to 60 (5 states)

20.1 to 30 (1 states)

60.1 to 70 (3 states)

30.1 to 40 (1 states)

>70 (17 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of August 30, 2021, globally there have been reported 216,303,376 confirmed cases (588,552 new cases) of COVID-19 and 4,498,451 deaths (7,698 new deaths*). Lethal rate: 2.1%. • In the last 14 days, the number of new cases accounts for 4% (8,895,783) of the total of accumulated cases.

SOURCE: https://www.gob.mx/salud/

TOWARDS THE “NEW NORMAL” INCIDENTS OF CONTAGIONS IN THE POPULATION BY REGION AS OF AUGUST 30

DEATH INCIDENTS IN POPULATION BY REGION AS OF AUGUST 30

SOURCE: https://www.gob.mx/salud/

WHY SHOULD YOU INVEST IN DIGITAL PR?

PUBLIC AFFAIRS

Digital PR, like digital marketing, has evolved from the offline to the online world.

YOELLE ROJAS Public Affairs & Communications Director

Digital PR aims to transform communication processes with target audiences through influencers. This strategy can be performed through various techniques, including guest posting, building relationships with journalists and influencers, social media engagements, combining PR with SEO (Search Engine Optimization), and allowing spontaneous information to be spread spontaneously, influencing consumer decisions.

Digital PR is using online platforms to manage and grow the reputation and awareness of your business. It helps you to build relationships with media, bloggers, influencers, and opinion leaders. The goal is to win earned media exposure across your platforms and those of your partners. You will gain a more extensive awareness and exposure to your company.

It will help if you take opportunities to share your values and knowledge through different platforms such as blogs, partners’ websites, podcasts, videos, social media, and business networks. Always remember digital public relations are a great tool in improving your reputation, growing your exposure, and improving your SEO.

LABOR

OUTSOURCING LABOR REFORM This Wednesday, September 1, companies in Mexico must already be in full compliance with the recent outsourcing labor reform. Deadline to comply has expired. From now on, all companies must have all the personnel for the activities of their corporate bi-laws and their preponderant economic activity hired directly. As for specialized services, under the modality of specialized outsourcing, they must have a contract that stipulates the services that the external company will provide, the approximate number of workers for the execution of the activities and to have secured the registration before the new public registry of the labor secretary. To ensure that employers are in compliance and that your suppliers are as well. In Prodensa, we have developed a platform to support our clients for assuring compliance. Contact us for more information.

ALVARO GARCIA HR, Vice President